Wednesday, February 5, 2014

Sluggish Week is Nonevent for Masimo. Look Forward to Earnings Release Next Week

Since its opening price of $29.31 on Monday, February 3rd, Masimo Corp. has fallen 5.8% to $27.62 as of today’s market close.  The stock has reacted directly to the recent bearish toll of larger macro events.  With earnings set to hit next week the 6% dip has not been directly correlated to any company specific events.

The sluggish performance this week points to a bigger picture.  Emerging markets have suffered at the start of this year from currency devaluation.  In January the Argentinian Peso fell 23%, the most dramatic depreciation since its financial crisis in 2002.  Currencies in South Africa, Turkey, and Russia have also taken hits between 7 and 9 percent.  The currency volatility has led to a loss of faith by investors in the emerging markets and consequently an economic slowdown.  With Masimo’s recent commitment to expansion in India it is paramount that management monitors the exposure of the dollar to the Indian Rupee.

In other news, former Chief Medical Officer (CMO) Michael O’Reilly has left Masimo and joined Apple to help rollout Apple’s new Healthbook for IOS 8.  Healthbook contains advanced health and fitness monitoring features that will be directly built into the next IOS update. 

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